Realm Energy Announcement (6550O)
September 21 2011 - 6:34AM
UK Regulatory
TIDMSLE
RNS Number : 6550O
San Leon Energy PLC
21 September 2011
21 September 2011
San Leon Energy
("San Leon" or "the Company")
Realm Energy Announces the Acquisition of Shale Gas Concessions
in Spain
San Leon notes today's announcement by Realm Energy regarding
their successful land acquisition in Spain for shale gas
exploration.
On August 26, 2011, San Leon announced that it had entered into
agreement with Realm Energy pursuant to which San Leon will acquire
all of the issued and outstanding shares of Realm Energy (the
"Acquisition") subject to, inter alia, approval by realm Energy
shareholders. Realm has given notice that it intends to hold a
special meeting on November 1, 2011 to seek shareholder approval
for the Acquisition. Further information with respect to the
Acquisition is available in the Company's press release dated
August 26, 2011, which can be viewed at San Leon's website,
www.sanleonenergy.com, or Realm Energy's website,
www.realmenergy.ca, or at www.sedar.com.
The full text of Realm's announcement is copied below:
Canada - Realm Energy International Corporation ("Realm Energy"
or the "Company") (TSX-V:RLM) (www.realmenergy.ca) is pleased to
report on its successful land acquisition in Spain for shale gas
exploration.
Realm Energy, in collaboration with Halliburton Consulting, has
been evaluating shale plays in numerous sedimentary basins in Spain
for approximately two years. Following this detailed evaluation,
the Company submitted 10 applications in five discrete sedimentary
basins, collectively comprising over 2.2 million acres (8,903
km2).
Realm Energy confirms it has now been formally awarded two
permits, totaling 212,099 acres (858 km2) in the Cantabrian Basin
of Northern Spain, for a period of six years.
With regard to the eight permit applications still in process,
the Hydrocarbons Department of the Spanish Ministry of Industry,
Tourism & Commerce has formally advised Realm Energy that it
was also the successful applicant on six of the permits, which
collectively total 1,512,383 acres (6,120 km2) and are now in
process for formal award. Of the 10 permits applied for (covering
2.2 million acres), the success of only two permits (covering
503,887 acres (2,039 km2) is yet to be determined.
The minimum work programs on the 212,099 acres formally awarded
and the 1,512,383 acres undergoing formal award, collectively
1,724,482 acres (6,978 km2), require the Company to acquire
approximately 600 km of 2D seismic in the first two years. In years
3 & 4 the Company is required to acquire 300-900 km of 2D
seismic, and drill and test three vertical wells. In years 5 &
6, the Company's minimum commitment is to drill and test five
additional vertical wells. These selected permits all have
excellent pipeline infrastructure.
The Company believes the shales in all concessions are thermally
mature and may be prospective for natural gas production. Initial
analysis of existing well logs indicates that primary targets are
likely to be Eocene, Cretaceous and Carboniferous shales at depths
ranging from 6,000-11,000 feet. Other preliminary mineralogy
indications include:
Thickness: 600-1300 feet net
Kerogen Type: Type II/III
TOC: 1 - 8% wt
Porosity: 2 - 6%
Maturity: Ro 1 - 2
Geomechanics: Brittle shales
Pressure: Normally pressured to over
pressured
Craig Steinke, Chairman & CEO commented, "As a result of
this recent success, Realm Energy is now well positioned in five
discrete sedimentary basins making the Company one of the largest
landholders for shale gas exploration in Spain. This presents a
tremendous growth opportunity for the Company as Spain also has a
proven and stable fiscal system that ranks in the top 10%
worldwide. Economic conditions are also attractive, as Spain is
currently dependent on imports for its natural gas supply, and gas
prices in the country are typically at a premium to prices found
elsewhere in Western Europe."
About Realm Energy
Realm Energy is a Canadian domiciled global energy company
focused on driving the exploration and development of major shale
plays throughout Europe and emerging countries. The Company
presently has projects in Poland, Spain and Germany and is in the
process of acquiring additional petroleum and natural gas rights in
other European basins. Realm Energy is committed to leveraging the
most advanced shale technology to bring these resources into
production.
On August 26, 2011, Realm Energy announced it had reached an
agreement with San Leon Energy plc ( development of major shale
plays throughout Europe and emerging countries. The Company
preEnergy (the "Acquisition"). The Company has given notice that it
intends to hold a special meeting on November 1, 2011 to seek
shareholder approval for the Acquisition. Further information with
respect to the Acquisition is available in the Company's press
release dated August 26, 2011, which can be viewed at Realm
Energy's website, www.realmenergy.ca, or at www.sedar.com.
For further information contact:
San Leon Energy Plc Tel: + 353 1291 6292
Oisin Fanning, Executive Chairman
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037
2000
Paul Connolly Tel: +44 (0) 20 7012
Ben Colegrave 2000
John Dwyer
Arbuthnot Securities
James Steel
Antonio Bossi
College Hill Associates Tel: +44 (0) 20 7457
2020
Nick Elwes
This information is provided by RNS
The company news service from the London Stock Exchange
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